by Alimat Aliyeva
In South Korea, the trade union representing workers at Hyundai
Motor Co. began a strike on Friday after failing to reach an
agreement with management over wage increases.
Production lines at Hyundai’s plants in Ulsan, Jeonju, and Asan
were scheduled to stop for a total of 16 hours. Around 39,000 union
members are expected to take part in the strike.
Including Friday’s action, the union has carried out a total of
60 hours of strikes since wage negotiations with management began
in May. The repeated walkouts are putting additional pressure on
Hyundai as the company tries to maintain stable production.
According to industry experts, the strikes could lead to
cumulative production losses of approximately 55,200 vehicles. The
resulting losses in potential sales are estimated to exceed 2.3
trillion won, or around $1.64 billion.
The situation could become even more serious next week, as the
union is planning additional four-hour strikes. Prolonged
disruptions could affect not only Hyundai’s domestic production but
also its supply chain and vehicle deliveries.
The labor dispute is also spreading to Hyundai’s affiliate Kia
Corp. On Friday, Kia’s union approved a plan for partial strikes
from Wednesday through Friday after failing to resolve its own
disagreements with management over wages.
Interestingly, labor disputes at major South Korean automakers
can have an impact far beyond the factory floor. Hyundai and Kia
are major exporters, so prolonged strikes can affect vehicle
supplies in overseas markets and potentially delay deliveries to
customers around the world.
The latest dispute highlights a broader challenge facing South
Korea’s auto industry: manufacturers must balance rising labor
costs and workers’ demands for higher wages with the need to remain
competitive in an increasingly crowded global electric-vehicle
market.